Japanese pension fund to invest in overseas hedge fund-managed crypto fund

The National Business Pension Fund Association, which covers 1,200 small and mid-sized Japanese companies, will invest in a cryptocurrency fund managed by a major overseas hedge fund, Nihon Keizai Shimbun reported. Ayu Kikuchi, the fund’s executive officer for investments, cited the asset’s low correlation with U.S. dollar price movements as the reason for the decision. Of the fund’s 21.5 billion yen ($194 million) in assets under management, 15% is held in dollar-denominated assets. It plans to initially allocate 1% of assets for diversification without significantly reducing its dollar exposure. The investment decision came after revisions to Japan’s Financial Instruments and Exchange Act were enacted on July 15.